Question

1. Perpetual Inventory Using LIFO

Beginning inventory, purchases, and sales for Item Foxtrot are as follows:

Mar. 1		Inventory	270 units at $18
8		Sale	225 units
15		Purchase	375 units at $20
27		Sale	240 units

Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on March 27 and (b) the inventory on March 31.

a.	Cost of merchandise sold on March 27	$
b.	Inventory on March 31	$

2. The following data were gathered to use in reconciling the bank account of Conway Company:

Balance per bank	$23,900
Balance per company records	8,700
Bank service charges	50
Deposit in transit	5,500
Note collected by bank with $450 interest	9,450
Outstanding checks	11,300

a. What is the adjusted balance on the bank reconciliation?

b. Journalize any necessary entries for Conway Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

1] Pesperial Inventory (LIFO) a. cost of meachandise sold on march 2 b. Inventory on march 31 7 4800 3510 = explanaton: purchase cost unit eu a TOTCH cost cost of Good sola cost-Torcy unit P.U cost Ending Inventory. cast TOTCH Unit P.U cost 270 $18 $4860 mari 225 $18 4050 45 $18 810 375 $20 7500 45 $18 375 F20 $810 500 240 $20 $4800/45 $18 810 135 $20 2700 $8850 [$3510

seconciliation (a) Adjusted balance on the bank $ 18100 = $ 23900 + 5500 - 11300 - 1518100 (6) Tournay Entry! caedit Dare 1 Account Name miscellaneous Expense To cash Debit 50 1 s so cash $ 99 so TO NOTE Receivable TO Interest revenue gooo OSO